Why Owning a Home Makes More Sense Today Compared to Renting

1. Why Owning a Home Makes More Sense Today Compared to Renting? Are you debating whether to continue renting or purchase a house this year? If so, think about this. The cost of renting remains high and has done so for some time. That's because rents typically increase over time. Since 1988, rents have been rising rather steadily, according to Census data. The data from the latest rental report from Realtor.com reveals that rents continue to grow today, despite the slower pace witnessed during the height of the pandemic, as evidenced by the single-digit growth experienced by the U.S. rental market for the eighth consecutive month in March 2023. The current median asking rent is $1,732, which is $15 more than last month but $32 less than the highest amount. However, it remains $354 (25.7%) higher than the rental rate at the same time in 2019 before the pandemic. What are the real estate solutionsto stop renting a house? Buy homes, owningyour own home may be a better option if rents continue to rise annually, which they have in recent years compared to more normal, pre-pandemic years. For the term of their loan (usually 15–30 years), homeowners with fixed-rate mortgages can lock in a monthly mortgage payment. Therefore, it might make sense to think about homeownership if you want to live somewhere with two or more bedrooms to suit your household, allow you more breathing area to spread out your possessions, or dedicate the extra space to indulge in your hobbies. Owning a home enables you to begin accumulating equity. Owning a home protects you from rising rents and makes it more reasonable when you need extra room, but it also enables you to begin accumulating your equity, which raises your net worth. Additionally, you create equity as you pay off your mortgage and often see an increase in home values over time. Because you may use that equity to support a transfer to a more prominent place in the future, it can position you for success. Because of this, according to Zonda, the primary motivation for millennial homeowners to purchase a home in the last year was to increase their equity rather than that of a third party. Final words Work with a reputable real estate agent to investigate your possibilities if you're attempting to decide whether to purchase a home or keep renting. It might make more sense to pursue your dream of homeownership now that rents are rising.